Infrastructure Projects in Jeopardy as Data Center Construction Accelerates
State and local governments have reportedly sold a record amount of debt for the second year in a row, with strategists predicting another $600 billion in sales next year.
Most of that money is expected to fund infrastructure projects, including improvements to roads, bridges, and other essential infrastructure.
However, the increasing demand for data center construction could divert resources away from these projects.
Data Center Construction Outpacing Infrastructure Spending
According to Census Bureau data, private spending on data center construction is running at an annualized rate of over $41 billion, comparable to state and local government spending on transportation construction.
Meanwhile, experts warn that the labor shortages in the construction industry, exacerbated by retirements and President Donald Trump’s immigration crackdown, will further strain resources.
As a result, infrastructure projects may face significant delays or even cancellations.
CEO Warns of Resource Suck from Data Center Construction
Andrew Anagnost, CEO of Autodesk, a leading architecture and design software maker, has expressed concerns about the impact of data center construction on other projects.
He stated, “There’s absolutely no doubt that data center construction sucks resources from other projects.”
Consequently, Anagnost predicts that many infrastructure projects will not move as quickly as expected.
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